21st Sep 2023 10:14
(Alliance News) - Essentra PLC on Thursday said it has bought BMP SRL, a Milan-based manufacturer and distributor of protective caps and plugs, for up to EUR37 million.
The Oxford-based components company said BMP manufactures and distributes an extensive range of protective caps and plugs from their Italian based facilities.
It has also been a trading partner to Essentra for over 20 years, with the two maintaining a "well-established relationship".
Essentra said BMP is a "complementary and strategically aligned bolt-on acquisition, demonstrating the continued momentum of Essentra's disciplined inorganic strategy".
"In line with the group's acquisition criteria, BMP TAPPI will strengthen and enhance the group's existing core, profitable product range, further expand the group's manufacturing footprint in Europe, and deliver attractive cost and revenue synergies through cross-selling opportunities into both the Essentra and BMP TAPPI customer base," Essentra added.
The company will pay EUR33.5 million for BMP, as well as a deferred payment of up to EUR3.5 million.
In 2023, BMP is forecast to generate revenue of EUR13.4 million.
Essentra expects the acquisition to be accretive to margins and adjusted earnings per share in the first full year post-completion.
The acquisition is expected to be sealed before the end of 2023.
Chief Executive Scott Fawcett said: "This transaction continues to demonstrate our successful inorganic growth strategy in action, as we leverage our strong balance sheet to capitalise on the significant opportunities we see for product expansion and market share gains, and brings another high quality business into Essentra, which will be accretive to both underlying earnings and margins."
Shares in Essentra were up 0.8% to 148.80 pence each in London on Thursday morning.
By Sophie Rose, Alliance News reporter
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